• Celsius reaches a $25 Million Settlement with Series B Holders for GK8 Sale Proceeds Allocation.
• The settlement allocates $24 million to legal expenses and the remaining $1 million amongst the Series B holders.
• The agreement was reached in order to prevent costly litigation and confirmation process.

Celsius Reaches $25 Million Settlement

The Israel-based GK8 was initially acquired by Celsius for $115 million in 2021. The bankrupt cryptocurrency lender Celsius, its creditors, and its Series B holders have reached a settlement with regard to the distribution of $25 million in proceeds from the sale of crypto custodian GK8.

Allocation Of Funds

According to the filing, the settlements seek to deploy $24 million for legal expenses while allocating the rest of $1 million among the Series B holders.

Mutual Desire To Prevent Costly Litigation

The court document also states that the settlement agreement was born out of the “mutual desire” to prevent costly legal disputes and an extensive confirmation process, which would lead to higher professional fees.

GK8 Acquisition

GK8 was initially acquired by Celsius for an unknown amount, which was later disputed to be $115 million, in November 2021. However, as Celsius filed for Chapter 11 bankruptcy protection earlier this year, it had been embroiled in lengthy legal battles regarding its financial transactions and operations prior filing for bankruptcy.

End To Contentious Litigation

The agreement between the Debtors, the Committee, and the Initial Consenting Series B Preferred Holders is said to have been “thoughtfully negotiated and is eminently reasonable”. It brings an end to nearly a year of highly contentious litigation and removes one of the largest obstacles towards confirmation and emergence in exchange for a mutual release of claims between Initial Consenting Series B Preferred Holders and Estate Parties.

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